The rise of the Internet has created an abundance of easily accessible economic information. Unfortunately, this has made it difficult for investors to understand, digest, and even evaluate. Where, then, can investors turn for objective economic analysis, market research, and breaking fiscal news that affects both Wall Street and Main Street?

In 2001, Michael Lombardi started his famous daily economic newsletter Profit Confidential. Written by Lombardi Financial editors who have been offering stock market guidance to Lombardi customers for years, Profit Confidential provides a macro-picture on where the stock market is headed, what sectors are hot, and what sectors to avoid.

Over the years, Michael’s financial commentary and the accuracy of his economic predictions have garnered him global attention and the confidence of over one million investors in more than 140 countries.

When the U.S. economy was on the verge of collapse after the financial crisis of 2008, the Federal Reserve came to the rescue. The central bank provided the financial system with quantitative easing (QE)—it printed money and bought bad debt from the big banks. As a result, the Federal Reserve’s balance sheet has grown by almost $2.0 trillion—200% in less than five years. Where did the money come from, and how does it affect the buying power of the average American?

The eurozone is struggling to get out of a debt crisis that has been helping weigh down the global economy. Germany and France, the go-to countries for economic growth and stability in the eurozone, are beginning to experience retractions and may not be able to prevent the region from slipping into a recession. The eurozone unemployment rate reached a record high of 11.7% in October 2012, up from 11.6% in September. There are 18.7 million people unemployed in the region, with Spain and Greece’s unemployment rates both exceeding 25%. (Source: Eurostat, November 30, 2012.)

What does this mean for the eurozone? How will it impact the United States? Or, affect the Chinese economy?

At the same time, it’s important that economic analysis takes an ongoing look at domestic policies. For example, cities like Vallejo, Mammoth Lakes, Stockton, and San Bernardino have already defaulted on their municipal bonds. What caused them to declare bankruptcy, and how does it affect the everyday investor and the overall health of the U.S. economy?

The global economy is constantly going through changes. We currently live in a world where one country is connected with the other. It doesn’t really matter anymore how far or close economies are to each other.

That’s why in-depth macro- and micro-economic analysis is more important than ever. It helps investors see the world from different perspectives and helps uncover opportunities to balance, diversify, and grow stock portfolios.

China’s economic situation, the information age, an end to the 30-year down cycle in interest rates, the credit crisis , the coming debt crisis in America, the eurozone crisis—these are only a few of the economic events occurring in the global economy. That’s what drives Profit Confidential. We take the economic information churned out daily, analyze it, and deliver understandable, even fun-to-read, economic analysis to our readers each day.

The global economy is headed towards an economic slowdown and it will take U.S. stock prices down with it.The growth rates of major economies are anemic. China is growing at its slowest pace in two decades, putting pressure on Australia’s economy. Japan has been going in and out of recession for years now. The crisis in Greece has strained. Read More

The last thing Wall Street is thinking about is an economic collapse in 2015. After all, the stock markets are at record highs, unemployment is down, and inflation is in check. But the fact of the matter is that these same indicators were also in check before the markets crashed in 1987, 2000, and 2008/09.Back in 2008/09, everyone on Wall. Read More

On Wednesday, June 3, 2015, the U.S. Census Bureau and the U.S. Bureau of Economic Analysis (BEA), through the Department of Commerce, reported the trade balance for the month of April. Results show that the trade deficit shrank more than expected. (Source: Bureau of Economic Analysis, June 3, 2015.) The gap reduced by 19.2% to $40.9. Read More

On Tuesday, June 2, 2015, a voting member of the Federal Open Market Committee (FOMC), Lael Brainard said that current economic data does not suggest that the U.S. will see a significant second-quarter rebound. She also stated that a strong dollar delays U.S. interest rates to nominal levels. Despite the disappointing economic data,. Read More

The benchmark Shanghai Composite Index cratered 6.5% last Thursday on news of a fund dumping several Chinese banks and the raising of margin requirements. But this doesn’t mean we are in store for a Chinese economic collapse. The Great Wall is not falling.Just like it was in 1987, 2000, and even more recently, Chinese stocks trading. Read More

Video: Here is why you should be Bullish on Gold | By: Michael Lombardi

Forecasts Aug. 2, 2015

Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the metal.

Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, the U.S. economy is also entering a slow growth phase (1Q15 GDP of -0.7%) which will negatively impact an already overpriced equity market.

Resources

Categories

Follow Us

Dear Reader: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and analysis. We are 100% independent in that we are not affiliated with any bank or brokerage house. Information contained herein, while believed to be correct, is not guaranteed as accurate. Warning: Investing often involves high risks and you can lose a lot of money. Please do not invest with money you cannot afford to lose. The opinions in this content are just that, opinions of the authors. We are a publishing company and the opinions, comments, stories, reports, advertisements and articles we publish are for informational and educational purposes only; nothing herein should be considered personalized investment advice. Before you make any investment, check with your investment professional (advisor). We urge our readers to review the financial statements and prospectus of any company they are interested in. We are not responsible for any damages or losses arising from the use of any information herein. Past performance is not a guarantee of future results.